Almost every company that employs credit to allow customers or business partners to benefit from its services eventually encounters a situation where someone is unable or unwilling to pay. Whether or not this situation arises due to an error on the part of that person or they are intentionally attempting to gain from your loss, the bottom line is that you deserve to recover any income that you have lost despite fulfilling your end of the bargain.
Even if you aren’t already facing a similar problem, you stand to benefit enormously from knowing what to do when you need to collect debts from delinquent clients. The following information is designed to get you well on your way toward a better understanding of debt collection strategy for business.
Get in Contact with Our Team
The best first step that you can take to resolve any problems you might have with unpaid invoices from delinquent accounts is to talk to us about the issue and get advice on moving forward. There’s no wrong time to contact us at Summit A•R for information on the particular situation you are facing. If you’re looking for debt collection strategies for your business, this is the first place you should look.
Focus on a Plan
When business owners face lost income, it is common for them to feel a range of emotions that may get in the way of a clear recovery strategy. When you’re feeling guilty and frustrated amid a complicated situation, finding a way through the forest is a challenge.
Businesses that rely on collection agency help can avoid the financial and psychological hardships of losing income. The faster you decide to trust your debt collection strategies to the experts, the better. We can help you build a plan that will set you on the road to recovering your finances.
Knowing When to Seek Professional Assistance
Going after delinquent accounts on your own is a bad idea. You hold an emotional stake in the negotiation, and you lack the experience and knowledge about debt collection laws that a professional team can offer. This may not seem necessary until you find yourself in a risky confrontation and do not know your rights – or the rights of the person that you may be guilty of harassing.
When you work with a team that has spent many years gaining experience and developing a highly effective debt collection process to employ in the toughest of situations, you’ll be giving yourself the opportunity to resolve the issue quickly and safely.
The Changing Face of Debt Collection Practices
Even those who have gained some understanding of debt collection in the past stand to gain from working with a team that spends every day in the trenches, learning the latest rules and regulations. For example, did you know that one of the most significant updates to debt collections in the United States in over 40 years just went into effect at the end of 2021?
If you aren’t familiar with all of the new CFPB Rules regarding text messaging and social media in resolving debt issues, you’re better off working with someone who does. Not only is our team un-to-date on this new change in collections law, but we have also incorporated it into our debt collection strategy.
Types of Business Debt Collection
When dealing with consumer collections, the situation is usually less complicated to navigate. However, in the case of commercial debt collection, there’s all the more reason to garner the assistance of debt collection strategies from a professional debt resolution expert. Whether you’re managing negotiations with an individual or with several people at a large business, you need someone on your side that can provide you with an edge.
Our P.H.D. Philosophy
Summit A•R may not be the only collection agency that upholds a belief in ethical conduct through every case that we resolve, but we are the only one with a P.H.D. Philosophy regarding those in debt. Our P.H.D. Philosophy stands for Preserve Human Dignity, which means that we treat everyone with respect and compassion.
You may be familiar with the old adage that you catch more flies with honey than with vinegar? Our debt collection strategy works similarly but without is disingenuous agenda lurking underneath.
The plain fact is that people are often willing to show respect and cooperation in return when they can see that you are genuinely looking out for their interests. Once someone is willing to cooperate, it is much easier to find a way to resolve a debt that is manageable and acceptable for all parties involved.
When you approach someone with different debt collection options that they didn’t realize were available before, it is easy to see that people who miss payments are often as eager to find a solution as those who are owed the money.
Maintaining Client Relationships
On the other hand, unethical debt collection strategies have been shown to be ineffectual time and again. They also prevent companies from maintaining good relationships with clients or customers that have always proved a valuable asset before the introduction of recent financial struggles.
The latter method inevitably results in burned bridges because no one wants to work with a company that resorts to harassment, robocalls and threats to resolve a simple matter of payment. You could even risk gaining a bad reputation among your peers in the industry due to working with a company that employs such tactics – or, even worse, if you employ them yourself.
When the time comes for you to find a new debt-collection strategy when faced with unpaid invoices, remember to think of our team at Summit A•R first. Not only can we provide you with collection strategies, but we can also take over the case to ensure that the money comes back to you as quickly as possible.